SPY vs SPYT
State Street SPDR S&P 500 ETF Trust vs Defiance S&P 500 Income Target ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | SPYT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.92% | |
| AUM | $789.1B | $154M | |
| Dividend Yield | 1.01% | 20.10% | |
| Holdings | 505 | 5 | |
| YTD Return | +13.68% | +10.72% | |
| 1Y Return | +21.53% | +16.24% | |
| 3Y Return (annualized) | +21.44% | - | |
| 5Y Return (annualized) | +13.18% | - | |
| Volatility (annualized) | 15.3% | 11.0% | |
| Max Drawdown | -56.5% | -18.3% | |
| Fund Family | State Street Investment Management | Defiance ETFs, LLC | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Mar 7, 2024 |
SPY vs SPYT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Defiance S&P 500 Income Target ETF (SPYT) is a ETF from Defiance ETFs, LLC. Over the past year SPY returned +21.53% while SPYT returned +16.24%. Year to date, SPY is up 13.68% versus a gain of 10.72% for SPYT.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.0% for SPYT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for SPY and -18.3% for SPYT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while SPYT charges 0.92%. On a $10,000 position that is $9 vs $92 annually, a gap of $83 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 20.10% for SPYT.
Holdings Overlap
SPY and SPYT share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or SPYT?
SPY has an expense ratio of 0.09% while SPYT charges 0.92%. SPY is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, SPY or SPYT?
Over the past year SPY returned +21.53% vs +16.24% for SPYT, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.85% vs +15.14% for SPYT. Past performance does not guarantee future results.
Which is riskier, SPY or SPYT?
SPY has been the more volatile fund at 15.3% annualized versus 11.0% for SPYT. Worst drawdown: SPY -56.5% vs SPYT -18.3%.
Should I hold both SPY and SPYT?
SPY and SPYT have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and SPYT?
SPY and SPYT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or SPYT?
SPY yields 1.01% while SPYT yields 20.10%, so SPYT currently pays the higher dividend yield.
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